KGBasin

Unlike 2005, when the country’s private refiners were late in producing Euro-III compliant fuel, this time the private sector has taken a lead, with Reliance Industries Ltd (RIL) becoming the first Indian refinery to produce Euro-IV compliant diesel.

The first cargo of 25,000 tonnes of Euro-IV grade diesel from RIL’s refinery at Jamnagar was shipped by Hindustan Petroleum Corporation Ltd (HPCL) on Friday, said an informed source. This is also the first coastal supply of Euro-IV diesel for the Indian market.

Sources said RIL was also gearing up to produce the higher grade of petrol. With the private refiner now ready to produce the higher grade, it will be easier for oil marketing companies to ensure the availability of Euro-IV diesel at the retail outlets of all 13 major cities of India by April 1, the target date.

An RIL spokesperson confirmed the sale of diesel. He did not give details on total production, citing trade confidentiality reasons.

Indian Oil Corporation, the biggest oil marketer, and Bharat Petroleum Corporation Ltd have recently floated tenders to import 120,000 tonnes and 60,000 tonnes of Euro-IV diesel, respectively.

Government policy calls for petrol and diesel meeting Euro-IV standards are to be supplied in 13 cities, including Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Ahmadabad, from April 1. Euro-III grade fuel is to be supplied across the rest of the country from the same day. The former deadline will be met. Sales of Euro-III will begin in a phased manner between April 1 and October 1.

Source:http://www.business-standard.com/india/news/ril-refinery-first-to-produce-euro-iv-auto-fuel/383580/

Reliance Industries Ltd.’s (RIL’s) work on its KG-D6 in the Krishna-Godavari basin (KG basin) has included development of at least 18 production wells, with subsea equipment, pipelines, a riser platform and an onshore terminal.

This rapid development had involved one of the world’s largest and most complicated underwater installations. Through a $ 400 million Engineering, Procurement and Construction (EPC) contract, Aker Kvaerner Subsea was in charge of the complete subsea production system.

Meanwhile, the 9,015 ton platform jacket was manufactured as part of an engineering, procurement, construction, and installation contract by J Ray McDermott.

In September 2007, India’s largest private sector company, Reliance Industries Limited (RIL) announced an oil discovery in the deepwater block KG-DWN-98/1 (KG-D4) located in the Krishna-Godavari basin (KG basin). This block was awarded to RIL, which holds 100% participating interest in it, under NELP-I and spans an area of 8100 sq kms.

The find, named ‘Dhirubhai – 36’, was the premier oil discovery in the deep-water basin of the area. The well was located in a water depth of 565 meters and was drilled to a target depth of 3595 meters. During the Drill Stem Testing (DST), the well flowed 596 barrels of oil per day.

In September 2009, the Directorate General of Hydrocarbons (DGH) said that the gas output from only the fields managed Reliance Industries Ltd. (RIL) could be almost 4 times the levels committed by the company so far.

The mammoth implication of these figures lies in its oil equivalence. Totaling about 2 million barrels of oil per day, it wholly covers India’s current consumption of oil. Ironically, most of this oil is imported by the country.  However, the nation’s gas consumption is over and above this expected output.

Yet, if both DGH and RIL confirm this production potential, it would mark the most significant energy development India has ever seen!

There is no doubt about the fact that the Krishna-Godavari basin (KG basin) is hydrocarbon-fertile. Since only about 1/3rd of the total potential for exploration wells has been drilled so far, the basin certainly holds far more gas in its womb than has been discovered so far.

In September 2009, the Directorate General of Hydrocarbons (DGH) said that the gas output from only the fields managed Reliance Industries Ltd. (RIL) could be almost 4 times the levels committed by the company so far.

Currently, RIL has committed 80 million metric standard cubic metres per day (mmscmd) and its current production level is about 36 mmscmd. Hence, if the DGH’s calculations are accurate, RIL’s output would be about 300 mmscmd – almost quadruple!

The famous KG-DWN-98/l (KG-D6) block, where Reliance Industries Ltd. (RIL) made the world’s largest gas discovery in 2005, spans 8,100 sq. kms. of the Krishna-Godavari basin (KG basin). It lies in the Bay of Bengal on India’s east coast.

The first three discoveries (Dhirubhai-1, Dhirubhai-2 and Dhirubhai-3) have expected gas reserves of 8 tcf.

In March 2003, the exploration team discovered Dhirubhai-4, with in-place gas volumes of 1,700 bn standard cubic feet.

In February 2006, RIL encountered the thickest hydrocarbon column so far in its MA-2 well. This column reached a depth of about 3.6 km and penetrated a gross hydrocarbon column of 194m consisting of 170 m of gas and 24 m of oil.

Initial rate of production from the MA field is about 5,000 barrels per day (bpd) and is expected to reach its peak rate of 40,000 bpd by about mid-2010. D1 and D3 are expected to reach 2.8 bcfd within the first year of operation, although there is flexibility to raise this to 4.2bcfd.